Home Insurance: landlord vs. tenant, who pays in the event of damage?

The landlord is responsible for the structure of the building and the fixed elements. Their insurance is designed to cover the risks associated with the building itself, irrespective of whether the tenant is at fault.

The landlord must insure:

• The building’s structure: Walls, ceiling, foundations and framework.
• Any furnishings belonging to the landlord: For example, a fitted kitchen or any other furnishings provided as part of the lease.
• Civil liability (third-party) building insurance: This covers damage caused to third parties by the building itself.

The risks covered by the landlord’s insurance are:

• Fire and explosion
• Water damage (often linked to deterioration of the pipework)
• Hurricanes, hailstorms and natural disasters
• Broken windows/glass
• Vandalism (according to contractual clauses)

The purpose is to protect the residence against external risks and natural deterioration.

The tenant is responsible for their own property and actions. Their insurance, also called “Assurance Risque Locatif” - Tenant's Insurance (for rental risks), is intended to cover any damages the tenant may cause and to protect their personal belongings.

The tenant must insure:

• The rental risk: their rental responsibilities, i.e. any damage they may cause to the property (fire, water damage etc.)
• Their personal belongings: clothes, personal electrical appliances, their own furniture.
• Any leased furnishings
• Private civil liability insurance: this covers damage or injury caused to others.

The risks covered by the tenant’s insurance are:

• Fire and water damage caused by the tenant
• Theft and broken windows/glass
• Specifics: compensation for damage to the building caused by the tenant (e.g.      a kitchen fire or broken window/glass)

It is vital to note an important point of nuance: Home insurance is not compulsory by law.

However, for the best possible protection, it is strongly advised that both parties are insured:

• The landlord protects the building against external risks and construction defects.
• The tenant ensures they have protection for their own property and for their responsibility to the landlord for the rented building.

Without insurance, each party risks having to financially cover major damage in the event of an accident, which could have severe consequences. Therefore, even if it is not always a strict legal obligation for every contract, taking out home insurance is strongly recommended to provide security for each party’s situation.